Tuesday, March 23, 2010

Google vs. China: the End Game

It's quite interesting to watch the current Google (ticker GOOG) vs. China Chess match over web search results censorship in China. It seems both parties are digging in their heels with tactics.

Where is it going to end?

At this point Google has probably gone too far with all the moves they have made to try to avoid censorship. It will not be a "good look" for their image if they were to totally back down now - though it will look good for the stock.

My prediction?

Google will close shop in China (including Hong Kong, where China will frustrate them).

Quitting China will probably not harm their stock because they currently don't make much of their money there. However, Google will be leaving a lot of money on the table in the long-run and this may prove too tempting.

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